With regards to non-tax revenues, the government has to fulfill its disinvestment targets and monetize surplus land, said Anil Khaitan, President, PHDCCI.
As the countdown to the Union Budget 2018 begins, CNBC-TV18 speaks to various segments of India Inc to find out their expectations from the Finance Minister.
The PHD Chamber of Commerce and Industry (PHDCCI) has proposed a corporate tax rate cap at 20 percent and tax sops for creation of manufacturing jobs.
It has proposed personal income tax rate cap at 20 percent and simplification of taxation to increase tax base.
Along with many other proposals, it has proposed for a time-bound target for disinvestments with a focus on reviving investments.
Speaking on the above Budget expectations, Anil Khaitan, President, PHD Chamber of Commerce and Industry said the 20 percent corporate tax proposal is with the proviso to withdraw all the incentives because with lower taxes the absolute value of tax collection will be much higher than what it is now at around Rs 8.8.5 lakh crore.
If the tax rates are low then no one would like to be non-tax compliant, said Khaitan.
With regards to non-tax revenues, he said the government has to fulfill its disinvestment targets and monetize surplus land. Both these would give government a lot of revenue.
However, he is not keen on bringing back the long-term capital gain tax being brought back. According to him, if GST is smooth and in-line then it would substantially increase revenues in terms of excise to the tune of Rs 3-4 lakh crore.For MSME sector, he said he would recommended the Finance Minister to start a web portal where all the payments and bills of MSMEs can be put up, to see that all corporates are paying their money on time.